Banco Products (India) EBITDA jumped on 46.7% and Revenue increased on 6.9%
26-05-2016 • About Banco Products (India) (
$BANCOINDIA) • By InTwits
Banco Products (India) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Banco Products (India) has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 6.9%
- CAPEX is quite volatile: ₹229m in FY2016, ₹243m in FY2015, ₹473m in FY2014, ₹420m in FY2013, ₹599m in FY2012
- The company has highly profitable business model: ROIC is 16.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 6.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from -0.92% to 2.8% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
Banco Products (India)'s CAPEX/Revenue was 1.9% in FY2016. Banco Products (India) showed decline in CAPEX/Revenue of 2.2 pp from 4.1% in FY2013 to 1.9% in FY2016. Average CAPEX/Revenue for the last three years was 2.8%. CAPEX as a % of Revenue declined at -0.98 pp per annum in FY2012-FY2016.
Return on investment
The company operates at good ROIC (16.8%) and ROE (13.7%). ROIC increased on 6.8 pp from 10.0% to 16.8% in FY2016. ROE decreased slightly on 0.76 pp from 14.5% to 13.7% in FY2016.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 0.2x Debt / EBITDA. Debt increased slightly on 1.9% while cash jumped on 197%.
Banco Products (India) has no short term refinancing risk: cash is higher than short term debt (294.9%).
Valuation and dividends
Banco Products (India)'s trades at EV/EBITDA 5.6x and P/E 10.1x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 6.6x with the industry average at 22.8x.
Financial and operational results
Banco Products (India) ($BANCOINDIA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,189 | 10,241 | 11,440 | 11,116 | 11,879 | 6.9% |
| EBITDA | 1,243 | 1,191 | 1,649 | 1,023 | 1,501 | 46.7% |
| Net Income | 765 | 613 | 898 | 877 | 899 | 2.6% |
Balance Sheet
|
|---|
| Cash | 288 | 186 | 205 | 360 | 1,070 | 196.8% |
| Short Term Debt | 822 | 1,621 | 1,440 | 278 | 363 | 30.4% |
| Long Term Debt | 649 | 518 | 283 | 78 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 599 | 420 | 473 | 243 | 229 | -5.9% |
Ratios
|
|---|
| Revenue growth | 18.5% | 0.5% | 11.7% | -2.8% | 6.9% | |
| EBITDA growth | 12.1% | -4.1% | 38.5% | -38.0% | 46.7% | |
|
|---|
| EBITDA Margin | 12.2% | 11.6% | 14.4% | 9.2% | 12.6% | 3.4% |
| Net Income Margin | 7.5% | 6.0% | 7.9% | 7.9% | 7.6% | -0.3% |
| CAPEX, % of revenue | 5.9% | 4.1% | 4.1% | 2.2% | 1.9% | -0.3% |
|
|---|
| ROIC | 19.1% | 13.9% | 18.3% | 10.0% | 16.8% | 6.8% |
| ROE | 19.7% | 13.7% | 16.9% | 14.5% | 13.7% | -0.8% |
| Net Debt/EBITDA | 1.0x | 1.6x | 0.9x | -0.0x | -0.5x | -0.5x |
Peers in Auto Parts & Equipment
Below we provide Banco Products (India) benchmarking against other companies in Auto Parts & Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spectra Industries ($SPECTRA) | 16.4% | 40.2% | -10.1% | 57.1% | - |
| Simmonds Marshall ($SIMMOND) | - | 4.6% | 13.4% | 28.5% | 0.1% |
| India Nippon Electricals ($INDNIPPON) | 13.6% | 3.2% | -2.4% | 24.8% | - |
| Amara Raja Batteries ($AMARAJABAT) | - | 25.1% | 16.1% | 22.6% | 11.4% |
| Enkei Wheels (India) ($ENKEIWHEL) | 16.9% | 1.3% | 11.7% | 21.6% | - |
| |
|---|
| Median (38 companies) | 16.9% | 2.7% | 4.9% | 9.3% | 1.3% |
|---|
| Banco Products (India) ($BANCOINDIA) | - | 0.5% | 11.7% | -2.8% | 6.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ist ($ISTLTD) | - | - | - | 71.6% | - |
| Tube Investments Of India ($TUBEINVEST) | 18.4% | 24.4% | 28.3% | 30.0% | 21.4% |
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | - |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (44 companies) | 10.8% | 9.8% | 10.1% | 10.3% | 10.9% |
|---|
| Banco Products (India) ($BANCOINDIA) | 12.2% | 11.6% | 14.4% | 9.2% | 12.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amtek Auto ($AMTEKAUTO) | 18.9% | - | 27.1% | 30.3% | - |
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | - |
| Rico Auto Industries ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | 7.4% |
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | - |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| |
|---|
| Median (25 companies) | 5.7% | 4.6% | 4.9% | 4.7% | 5.3% |
|---|
| Banco Products (India) ($BANCOINDIA) | 5.9% | 4.1% | 4.1% | 2.2% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | 33.7% |
| Exide Industries ($EXIDEIND) | 24.2% | 24.3% | 29.5% | 26.9% | 20.5% |
| Munjal Showa ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | 19.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| |
|---|
| Median (50 companies) | 15.7% | 11.9% | 13.6% | 14.6% | 15.4% |
|---|
| Banco Products (India) ($BANCOINDIA) | 19.1% | 13.9% | 18.3% | 10.0% | 16.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 17.6x | 17.8x | 17.3x | 16.4x | 0.1x |
| Amtek Auto ($AMTEKAUTO) | 4.8x | - | 5.3x | 5.8x | - |
| Remsons Industries ($REMSONSIND) | 2.8x | 4.3x | 3.6x | 5.7x | - |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Ucal Fuel Systems ($UCALFUEL) | 4.3x | 5.6x | 5.7x | 3.6x | - |
| |
|---|
| Median (42 companies) | 1.3x | 2.2x | 0.7x | 0.0x | 0.0x |
|---|
| Banco Products (India) ($BANCOINDIA) | 1.0x | 1.6x | 0.9x | -0.0x | -0.5x |
